Which of the following is not a step in the net present value approach to capital budgeting?
A)Identify the amount and timing of each cash flow.
B)Determine the payback period.
C)Calculate the present value of each cash flow.
D)Calculate the net present value of the project.

Question

Quizplus · Accepted Answer

The payback period is a separate method of capital budgeting and is not a step in the net present value approach. The steps in the net present value approach are: identifying the cash flows, calculating the present value of each cash flow, calculating the net present value of the project.

Which of the Following Is Not a Step in the Net